MSMEs in 2021: Six key trends in B2B e-commerce
Rahul Garg, our CEO & Founder shares insights on MSMEs in 2021. He discusses the six key trends emerging in B2B e-commerce that will jumpstart small business recovery. The B2B platforms will enable MSMEs to expand smoothly, penetrate deep into remote locations across the country, get a hold of their cash flow and finances, and add value to the global value chain.
‘MSMEs that enroll in B2B e-commerce ecosystems will have the scope to earn up to 51 per cent higher revenues annually than their offline counterparts.’
Rahul also explains the challenges that the sector has faced during 2020 and how these could be prevented in the future. Digitization, agility, and resilience are the keywords for 2021.
B2B e-commerce platforms will provide a cost-efficient and seamless digital interface between MSMEs and enterprise customers in manufacturing and connect the former to more opportunities to sell higher and better, thanks to the 5G digital infrastructure.
Delayed payments have been a source of concern for MSMEs through the pandemic. While the government’s plan to secure MSMEs’ payments within 45 days is laudable, they will require short-term supply chain credit sources. Banks have to follow due diligence to optimize the risks of NPAs in their balance sheets and therefore have to anchor MSME debt offerings to collaterals.
On the other hand, B2B e-commerce platforms can use analytics and big data and create alternative risk, assessment models. They can use digital capabilities to analyze MSMEs’ cash flow, turnover, customer portfolio, supplier ratings by leading OEM customers, and records of bad-debts, if any, and provide agile supply chain credit to them.